Chapter 6 Audit Responsibilities and Objectives Objective of Conducting an Audit of Financial Statements (page 140) Management’s Responsibilities (page 141) The management, and not the auditor, is responsible for adopting sound accounting policies, maintaining adequate internal control, and making fair representations in the financial statements. Auditor's Responsibilities (page 142) While SAS 1 does not state that the auditor is responsible for finding all instances of material errors and fraud, it requires the auditor to plan and perform the audit to obtain reasonable assurance that material errors and fraud will be found. It is important to distinguish between errors and fraud . There are two types of fraud: fraudulent financial reporting and misappropriation of assets. The auditor’s responsibility for discovering illegal acts. Distinguish between direct-effect illegal acts and indirect-effect illegal acts, and the auditor’s

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